There has been considerable speculation in recent months concerning reasons why the S-300 air defense systems supplied to the Syrian Arab Army by the Russian Federation have yet to fire a shot in anger at Israeli aircraft encroaching on its airspace and launching ordnance against a variety of targets on Syria’s territory. This video attempts to explore a reasonably complete range of explanations. On the one hand, the S-300 batteries in Syria operate under a handicap of operational and political restrictions. However, it would be a mistake to believe that just because missiles are not being launched, that the weapons in question are ineffective.

Israel’s Human Shields

One crucial aspect of Israeli aerial operations is their use of civilian air traffic and also US-led coalition operations to shield their aircraft against Syrian air defenses. It is noteworthy that Russian cruise missile strikes, for example, are invariably preceded by international notifications and closures of relevant airspace in order to prevent tragedies. Israel has not followed similar procedures and has frequently sent its combat aircraft into airspace used by civilian airliners over the Mediterranean and Lebanon. Considering the “international reaction” that would have inevitably followed in the event of a Syrian or Russian air defense shoot-down of a civilian airliner, it is rather likely that rules of engagement

used by the Russia-led coalition forces in Syria include strict prohibitions against engaging hostile aircraft when there is even a remote danger to civilian aircraft. The loss of Russian Il-20 with its entire crew to a Syrian air defense missile clearly shows the dangers of engaging remote targets in a crowded airspace.

The Lebanese Doormat

Few examples illustrate the hypocrisy of Western powers’ supposed belief in the sanctity of national sovereignty better than its condoning of near-constant Israeli violations of Lebanese airspace. While that country’s territorial sovereignty is rarely challenged by Israel largely thanks to Hezbollah’s ability to inflict severe casualties on the IDF, neither Hezbollah nor the Lebanese military possess an air force or an air defense system capable of doing the same for the country’s airspace. This allows Israeli aircraft to use Lebanon’s terrain features, specifically the mountain ranges flanking the Bekaa Valley, as a shield against long-range air defense systems. Israeli aircraft using stand-off munitions such as the SDB or Delilah are able to position themselves close to their targets by flying below the Syrian radar horizon, then popping up to launch their GPS-guided weapons before dropping down below the horizon to return to base. In order to deny Israel that ability, Syria and Russia would have to extend their air defense network to the Bekaa Valley and/or patrol it using their own fighter aircraft, a measure that would likely provoke “international condemnation” and risk a massive escalation of the conflict. By the same token, the “international community” has imposed a de-facto embargo on the provision of modern weapons systems of any kind to the state of Lebanon, rendering it unable to defend itself against Israeli incursions.

Russian “Equidistance”

Further complicating matters is the fact that the Russian foreign policy is attempting an extremely difficult task of maintaining reasonably good relations with both Israel and Iran in order to achieve its foreign policy objectives and bring the war in Syria to a successful conclusion. It really is a testimony to the skill and perseverance of Russian diplomats that it has managed to remain in good standing with both of these states. No other major power can claim a similar success. But the downside of this kind of diplomacy is that it makes Russia, and therefore, by extension Syria (over whose national air defense system Russia exercises considerable control simply in order to safely operate its own aircraft) unwilling to engage Israeli aircraft except in the extreme cases of Israel attacking Russian bases or assets in the area. Israel, for its part, has refrained from striking Russian and high-value Syrian targets which does suggest there exists something akin to an understanding between Russia and Israel that was reached in the wake of the aforementioned loss of the Il-20. That loss led to a serious, though apparently temporary, deterioration of Russia-Israel relations. Fortunately Israel’s leaders value Russia’s good will, which is evidenced by Netanyahu’s nine meetings with Vladimir Putin in the space of 3 years and so far have been unwilling to risk even their brand-new F-35s against the S-300s. The combination of these political factors has limited Israel’s attacks against Syrian territory, which is also a contributing factor to the apparent idleness of the S-300 batteries.

The Iran Factor

As if these problems were not enough, it doesn’t help matters that Iran is pursuing a range of objectives of its own, which may not be consistent with Syrian and Russian interests. One visible example of the relatively low level of trilateral cooperation was the abrupt cancellation of the permission given to the Russian Aerospace Forces to use an airbase on Iranian territory to enhance the effectiveness of bombers operating from Russia against targets in Syria. While Iran’s efforts to ensure its security vis-à-vis the United States, Saudi Arabia, and Israel are understandable, given the brutal nature of the power struggle in the region, in practical terms it means that Russia’s leadership does not feel an obligation to protect Iranian assets in Syria every time Israel attacks them. There certainly is no evidence of any security agreement between Russia and Iran suggesting a commitment to mutual defense. The dependence on Iran-provided or Iran-supported manpower in the form of IRGC troops, Hezbollah, or Shia militias has moreover meant that Russia had relatively few levers of influence over Iranian policies in the region, since Iran’s ability and willingness to put “boots on the ground” in Syria made it an indispensable part of that loose alliance. To the extent that there exists an understanding between Russia and Iran in matters regarding Syria, it seems to consist of Russia giving Iran a more or less free hand to do as it pleases, in return for Iran not expecting Russian air cover for its activities which in turn allows Russia to remain on good terms with Israel whose goodwill it definitely needs to end the war in Syria.

Conclusion

While the situation remains relatively stable with few escalation risks, it cannot be said it is a satisfactory state of affairs because considerable ambiguities remain and will remain for the foreseeable future. Iranian forces in Syria will remain indispensable to that country’s security for as long as US forces remain in Syria and the status of Syria’s northern provinces controlled by insurgent groups supported by Turkey remains unresolved. Until these issues are addressed, the S-300 batteries in Syria will continue to play their part in maintaining this uneasy equilibrium.

State officials are providing $100,000 to haul nearly a third of the cows that died in a recent blizzard to an Oregon landfill.

Gov. Jay Inslee’s office said that the removal of the dead animals was expected to be completed Wednesday, according to a news release.

The response was formulated by a team including representatives of state and local emergency management and health departments, the Washington State Dairy Federation, South Yakima Conservation District and the state departments of Agriculture and Ecology.

“It is encouraging how quickly this team of farmers, regulators and the local community were able to assess the situation and reach solutions that met everyone’s needs,” Inslee said in the release. “Their rapid response and cooperative spirit help avert further impacts of this devastating situation.”

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A blizzard swept through the Yakima Valley on Feb. 9, with subfreezing temperatures and winds gusting as high as 80 mph in places. Dairy industry representatives said 1,830 dairy cows were killed outright at about 14 area dairy farms.

Jay Gordon, policy director for the dairy federation, said other animals were so injured by the cold weather that they were being shipped to slaughterhouses.

“Farmers have never seen anything like this (in their memory),” Gordon said. “They said their dads hadn’t seen anything like this.”

Part of the problem, Gordon said, was that dairy farms had shelters laid out based on prevailing northeast winds, but the Feb. 9 storm came around from the southeast instead, putting the cattle in the storm’s path with no shelter.

Some of the cows were trampled to death as they huddled together for warmth, despite farmers’ efforts to get them to move to improvised shelters, Gordon said. Farmers worked through the storm to save as many animals as they could, as well as keep roads open for workers to get in and milk trucks to leave, dairy industry representatives said.

After the storm passed, it became imperative to dispose of the dead animals before the weather warmed up.

Many farmers opted to have rendering plants dispose of the carcasses, while others composted the animals on site. A few took theirs to local landfills, Gordon said.

The Farm Services Agency estimates the losses to the dairy industry at $4 million, The Associated Press reported.

Tara Lee, Inslee’s spokeswoman, said the state Department of Commerce is recommending affected farmers reach out to local economic development agencies to find out about possible support options. She said the USDA’s Farm Services Agency may have some financial assistance available.

The events for SMES and corporate clients will be held in branches and Eagle Labs, the bank’s co-working innovation spaces, and have 1,500 relationship managers on hand discussing managing cash-flow and working capital, exporting goods abroad, supply chain management, labour, and protecting businesses against fraud. The clinics will also look at using data and technology to help boost trade, from apps and automation, through to the bank’s partnership with Fintech MarketInvoice, providing funding against outstanding invoices.

In some areas industry specialists will also be attending to advise about specific sectors including agriculture, construction, hospitality, manufacturing and healthcare.

Also in the pipeline is a series of digital webinars for SMEs focussing on planning and resilience.

Jes Staley, Barclays Group chief executive, said: “At a time of general uncertainty, Barclays intends to play our part in supporting the UK economy, and in particular providing help to prepare and cope with whatever Brexit will bring, to the one million UK SMEs that we serve up and down the country.”

“We continue to see strong lending activity so we know things aren’t slowing down as we approach Brexit,” added Ian Rand, Barclays Business Bank chief executive.

]]>President Trump’s at times warm, at times contentious relationship with his Chinese counterpart has been an exercise in cognitive dissonance that’s reflective of a broader truth about the relationship between the world’s two largest economies. The veneer of economic cooperation belies deeper military tensions as China’s expansionist military aims threaten US security in the Pacific.

Just last week, the top US Navy commander in the Pacific warned that China represents the “greatest long-term strategic threat to a free and open Indo-Pacific and to the United States.” And the country’s insistence on carrying on with its military buildup in the South China Sea, one of the most vital waterways for global trade, has angered the US and nearly all of its neighbors. But while the US public labors under the illusion that a military conflict with the Chinese is only a vague possibility somewhere off in the indeterminate future, for the island of Taiwan, China’s increasing muscular military presence in the region is a daily threat that requires 24/7 vigilance, according to CNN.

As she struggles with waning poll numbers ahead of an election later this year, Taiwan’s pro-independence leader Tsai Ing-wen claimed in yet another interview with a western media organization that the world is underestimating the growing threat posed by Beijing.

After President Xi claimed during a landmark speech early this year that Taiwan would eventually be re-unified with the mainland in an arrangement similar to that of Hong Kong or Macau – something the Taiwanese people popularly oppose – and threatened any meddling foreign powers (ie the US) who dare to interfere), Tsai said that China crushing Taiwan would be a “setback for global democracy.”

In response to Xi’s threat, Tsai said earlier this year that Taiwan “would never accept” reunification with Beijing.

“If it’s Taiwan today, people should ask who’s next?” she said. “Any country in the region – if it no longer wants to submit to the will of China, they would face similar military threats.”

[…]

“If a vibrant democracy that champions universal values and follows international rules were destroyed by China, it would be a huge setback for global democracy,” she said.

In the face of the growing threat (Beijing has carried out military exercises in the Strait of Taiwan to try and intimidate Tsai) the president said that she was strengthening Taiwan’s military capabilities in the face of China’s rapid modernization, and that Taiwan would be “on alert 24/7” for the first sign of a Chinese strike.

“What we are expecting is, after withstanding the first wave of Chinese attacks ourselves, the rest of the world would stand up to exert strong pressure on China,” she said.

Indeed, the biggest challenge facing Taiwan, in Tsai’s view, is its “continued existence.”

“Our challenge is whether our independent existence, security, prosperity and democracy can be maintained. This is the biggest issue for Taiwan.”

After the interview, Tsai reiterated to a group of reporters that the island would not accept any deal that “threatens democracy,” according to Al Jazeera.

“Taiwan society will not accept any treaty that harms Taiwan’s national sovereignty and democracy,” Tsai told reporters in Taipei on Wednesday, adding that there would not be real peace unless China ruled out using force to bring Taiwan under its control.

Meanwhile, an editor for the Beijing-backed Global Times accused Tsai of warmongering.

You can run for re-election. But please don’t turn your campaign into a crazy process of escalating cross-Straits tensions. Don’t let people on both sides of the straits pay for your selfish political interests. https://t.co/AYivObFf6d

Launching this month, First Food Thermapen (£40) puts an end to trial-and-error by hitting the Goldilocks’ zone and delivering an accurate reading in seconds that’s geared to multi-tasking mums and dads. It marks the latest innovation from Electronic Temperature Instruments (ETI), a Sussex-based measuring equipment manufacturer that boasts a worldwide foodie fanbase spanning ambitious amateurs, famous chefs and professional kitchens in 100 countries.

“Food, breast milk and formula can be heated and re-heated safely with our new product and guide. Many parents are unsure about correct temperatures, yet they are crucial for the preservation of nutrients and hygiene maintenance,” explains ETI managing director and co-founder Peter Webb.

“Microwaving alone for example isn’t enough, families must be able to trust and control.”

He and his wife Miriam, “best friends and business partners”, set up the family firm 35 years ago making affordable measuring instruments and probes at a time when the food industry was largely ignoring this aspect.

After strong orders from start, however, the archetypal family firm, which now includes the couple’s three children as directors, has expanded steadily making 70 percent of what it sells and with sales now split 40:60 between the UK and overseas.

This year the company is forecasting a £15.7 million turnover and employs 175 plus staff on three sites in Worthing.

Its most recent acquisition, taking £500,000 of investment, will house its R&D team and be the design and manufacturing hub for its wifi, Bluetooth and infrared products.

Able to monitor without probing they are essential for checking the likes of frozen food and hotplate servings

A boost from the tightening of food hygiene regulations in 1990, the broad range of its Thermapens which cover from -49.9C to 299.9C, helped establish the business.

Then another unforeseen game-changer, Britain’s revolutionary transformation into a nation of adventurous but discerning food-conscious consumers and suppliers, consolidated its success.

Now whether cooks aspire to bake the perfect macaroon or just want to knock out a creative dish or two, a thermometer is part of their toolkit.

“The celebrity shows, endorsements and more recently interest generated by Instagram posts have brought food and the importance of temperature control to the fore, creating a trend and demand for more technology in the way we cook at home,” says Webb who as well as having John Lewis as a key UK stockist has seen sales soar in the US thanks to competitive BBQ-ing.

Now more akin to a national sport there, the slow cooking expertise and appraisal skills expected from teams has proved a match made in heaven for ETI’s Thermapen Professional model.

Sales are also growing in Chile, Argentina and Peru, countries with strong culinary reputations although Brazil’s size and inflation have made it a tougher one to crack so far.

“Brexit uncertainty has widened our horizons,” says Webb.

“Our biggest difficulty is when the value of the US dollar falls. But we have always been a company that focuses on sustainability through steady growth and re-investing profits. Through that we were able to develop the First Food Thermapen which took eight months and £100,000.”

After a hiring a team of green ambassadors the company has reduced its packaging, pursues eco-friendly printing for catalogues and fields volunteers for Worthing’s beach clean-ups.

“We are proud our products have ‘Made in Britain’ on them,” says Webb. “For all the obstacles there much to celebrate about British manufacturing.”

]]>Dick’s Drive-In opened 65 years ago, back when a hamburger, fries and a shake cost 51 centshttp://newsreviewsonline.com/dicks-drive-in-opened-65-years-ago-back-when-a-hamburger-fries-and-a-shake-cost-51-cents/
Wed, 20 Feb 2019 15:13:26 +0000https://www.seattletimes.com/?p=11313548https://www.seattletimes.com/life/food-drink/today-is-the-anniversary-of-the-first-dicks-drive-in/Sixty-five years ago today, a new burger joint celebrated its grand opening on what […]

With inflation, their burger cost more then than now. The 19-cent burger would be $1.77 in today’s dollars. It costs $1.60.

Their 21-cent malt would be $1.96 in today’s dollars. A milkshake now costs $2.75.

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Their 11-cent fries would be $1.03 in today’s dollars. It costs $1.90.

Dick’s opened on Jan. 28, 1954, and had its grand opening a few weeks later, on Feb. 20. Since then, six more sites have opened in the area: Capitol Hill (1955), Holman Road (1960), Lake City (1963), Queen Anne (1974), Edmonds (2011) and Kent.

]]>Average Consumer Expenditure Per Year Proves Americans Are Living The Dreamhttp://newsreviewsonline.com/average-consumer-expenditure-per-year-proves-americans-are-living-the-dream/
Wed, 20 Feb 2019 10:08:14 +0000https://www.financialsamurai.com/?p=82635https://www.financialsamurai.com/the-average-consumer-expenditure-in-america/We know the average spending for American households over the age of 65 is […]

]]>We know the average spending for American households over the age of 65 is a surprisingly high $45,756 a year or $3,800 a month according to the Bureau of Labor Statistics.

Given the average Social Security benefit is only $17,532 a year, or $1,461 a month, the average retiree likely has a significant amount of retirement savings in order to account for the missing $2,339 a month.

With no debt, life in retirement is quite comfortable for current Americans in traditional retirement age.

But how much is the average expenditure across all ages? Surely, the average American can’t be spending too much while working in order to have so much in retirement. Let’s take a look at the latest available data from the BLS.

Average Consumer Expenditure

Incredibly, the average expenditure per consumer unit for 2017 was $60,060, a 4.8% increase from 2016 levels. During the same period, the Consumer Price Index (CPI) rose 2.1%, and average pretax incomes decreased slightly by 1.5%.

Eight of the 10 largest components of household spending increased during 2017. The 12.2% rise in education spending was the largest percentage increase among all major components, followed by a 10% rise in entertainment.

Take a look at the BLS data below and we’ll go through most of the line items in more detail.

https://www.bls.gov/news.release/cesan.nr0.htm

Average Income: $73,573

Although average income declined by 1.5% from 2016-2017, $73,573 is still a pretty healthy amount compared to the median income in America of ~$62,000.

With the median home price in America at roughly $225,000, it’s good to see the home price-to-income ratio is still quite reasonable at 3:1. Once you have a roof over your head, life is pretty affordable.

In some cities around the country, however, the median home price is often 10X or greater the median or average income. For example, the San Francisco median income is $97,000 versus $1,500,000 for the median home price = 15X.

Savvy investors should consider adopting my Buy Utility, Rent Luxury (BURL) Strategy to potentially improve their real estate investment returns. There may be some narrowing of valuations over the longer term thanks to technology and migration shifts.

Average Effective Federal Tax Rate: 12.89%

If you punch in the average income of $73,573 into an income tax calculator, you will see that the marginal federal tax rate is 22% and the effective tax rate is 12.89%.

Given the maximum taxable amount for FICA is $132,900 for 2019, the average income earning household pays the full 7.65% FICA amount.

If the average household lives in one of the seven no state income tax states, then their total effective tax rate is 20.54% (Federal + FICA).

If the average American household lives in a high income tax state such as California, they would pay an estimated 25.55% effective tax rate, or $18,800 in taxes on their average $73,573 income.

If you want to exclude FICA from the effective tax rate calculation given it is included in Spending, then the effective tax rate ranges from 12.89% – 17.90%.

Tax is likely your largest ongoing liability, especially if most of your income comes from W2 wages. Instead, think about earning investment income that is often taxed at a lower rate.

As soon as an individual starts making over $38,701, their long-term capital gains tax rate falls below their marginal Federal income tax rate.

In addition to earning more efficient investment income and rental income, consider earning business income. Business income can be shielded by various business deductions.

Just ask Jeff Bezos how his company, Amazon, was able to earn $11.2 billion in profits in 2018 while paying zero income taxes.

Average Cash Flow: Negative

Given the average expenditure per year is $60,060, the average American household is likely spending all their gross income of $73,573 and then some.

If the average American household lives in a high income tax state, then they have an average negative cash flow of $5,287 a year ($60,060 – $54,773 in after-tax income).

If the average American household lives in a no income tax state, then they have an average negative cash flow of $1,601 ($60,060 – $58,459 after-tax income).

Negative cash flow is likely one reason why average household debt continues to march to record highs.

Good thing debt as a percentage of disposable personal income continues to stay at multi-decade lows. The below graph shows the average American consumer should be able to withstand a negative economic shock better than during the 2008-2009 financial crisis.

Average Food Spending: $7,729

$644 a month on food seems reasonable. What’s unreasonable is the growing obesity epidemic in our country that is putting a great strain on our health care system.

According to the Center for Disease Control, about 610,000 people die of heart disease in the United States every year–that’s 1 in every 4 deaths. Heart disease is the leading cause of death for both men and women. And obesity is the leading cause of heart disease.

Average Housing Expenditure: $19,884

Seeing a 5.3% YoY jump in average housing expenditure is concerning since inflation averages roughly +2% a year. If you look at the line items under Housing Expenditure, you’ll see Owned Dwellings +10.4% YoY and Rented Dwellings +3.3% YoY.

Whichever line item you want to focus on, such large increases in housing expenditures is the main reason why I encourage all of us to get neutral real estate by owning your primary residence.

Over the long run, you will lose out as a renter because inflation is too nasty a beast to conquer. By at least getting neutral, you can ride the inflation wave while paying down your mortgage.

Transportation: $9,576

Spending $798 a month on transportation for the average American is such an incredible waste of money.

According to Kelley Blue Book, the average car price has surged to $36,000, which likely accounts for why Americans are spending so much on transportation.

Meanwhile, auto loan delinquencies have reached 19-year highs, despite a strong economy. A record 7 million Americans are 90 days or more behind on their auto loan payments, according to the Federal Reserve Bank of New York.

Health Care: $4,928

I’m pleased to see the average American household is only spending $411 a month in health care thanks to employer subsidies. The average health care spend makes the average transportation spend of $798 seem that much more ridiculous.

What’s concerning about the average health care spend is the rate of growth. From 2016 – 2017, the spend rate increased by 6.9% after experiencing a 6.2% annual growth rate in the year prior.

At an annual 6%+ growth rate, we should expect the average health care expenditure to double in just 11-12 years.

Entertainment: $3,203

Spending $267 a month on entertainment for the average household is quite reasonable. With cheap video streaming, low cost internet, affordable mobile phones, and loads of free entertainment online, we are spoiled with multiple low cost options.

The 10% YoY growth in entertainment spending is very high, which probably is a reflection of strong consumer confidence.

Personal Insurance and Pensions: $6,353

The average household is spending 10.6% of their annual spending on Pension and Social Security.

When we add back the $6,353 a month in Pension and Social Security spending (saving) to the $1,601 – $5,287 negative cash flow, the average American is technically saving $1,066 – $4,752 a year, or 1.45% – 6.45% of their average gross income.

As you can see from the chart below, the current personal savings rate according to the U.S. Bureau of Economic Analysis is 6%, which is in-line with the 1.45% – 6.45% range I’ve just calculated.

It never occurred to me the government categorizes Personal Insurance and Pensions as savings, since most do not have pensions and many see FICA as simply a welfare tax.

Therefore, for those who think the same way, there may be a nice upside surprise to our finances when we reach traditional retirement age.

The Average American Is Living A Great Life

If the average consumer can spend $60,060 a year while working and still spend $45,756 a year after the age of 65, it’s clear the average American is doing very well.

The easiest expense to reduce is Transportation at $9,576 a year. With the growing popularity of ridesharing and the invention of self-driving cars within the next 5-10 years, I expect transportation cost to start going down as more and more Americans shun owning vehicles.

At the very least, I see the average household reducing the number of vehicles in their driveways.

With $2,010 a year spent in the All Other Expenditures category, the average American household has also allotted a decent buffer for miscellaneous expenses. As we all know, something always comes up.

For those of you who are determined to reach financial independence and stay financially independent, the data says we are likely spending too little and saving too much. But it all depends on what age you want to be financially free.

If the average American can save just 1.45% – 6.45% and live the good life, surely the average personal finance enthusiast who is saving 20% – 50%+ of their income while also building a significant passive income portfolio will do just fine.

Social Security is doing a better-than-expected job at keeping the average American afloat. If you are dubious about the government’s ability to pay back its people in retirement, it’s worth running a new set of retirement calculations. Chances are you’re in better financial shape than you realize.

Readers, what are your thoughts about the average consumer expenditure? Based on the figures, why do politicians and the media paint the average American in dire straits? It seems clear our social safety net and financial habits are good enough to support the average consumer while working and in retirement. Are you as bullish on America’s economy as I am?

]]>Europe Is Losing The Technology Race. Here Is Whyhttp://newsreviewsonline.com/europe-is-losing-the-technology-race-here-is-why/
Wed, 20 Feb 2019 08:15:22 +0000https://www.zerohedge.com/news/2019-02-18/europe-losing-technology-race-here-whyhttps://www.zerohedge.com/news/2019-02-18/europe-losing-technology-race-here-whyAuthored by Daniel Lacalle, If we analyze the ranking of the main technological companies […]

If we analyze the ranking of the main technological companies (2017), there is not a single European among the top fifteen. The vast majority are North American and Chinese companies.

It is even more worrying. If we go to the top 50 global technology companies, only four are European, but when we analyze those four, it is more than debatable that they are leaders in innovation, patents and market power. The European indexes of “technology” include, diplomatically, a few industrial conglomerates that have long lost the technological race.

This is not by chance or bad luck. It is by design, sadly.

A wrong taxation

The European Union usually talks a lot about technological investment and its commitment to new industries, but much of it is a facade. It penalizes technological investment in a very aggressive way, as well as the value creation and wealth that it entails. European taxation penalizes technological investment from the beginning, not only putting obstacles to companies from the start but, more importantly, with a confiscatory policy on capital investments, stock option schemes and private equity that finance business growth. It is not only monumental errors such as the so-called “Google Tax” and a myopic view of taxation aimed at scraping revenues from anything, but it is also the assault on any capital investment, added value, and profit created from risk-taking by investors who bet on innovation. In Europe, if something is not subsidized, it is considered suspicious.

Everything comes from the huge mistake of a European Union that seems to behave like a combination of a television preacher and the sheriff of Nottingham. One that tells others what they have to do and how to behave while confiscating the last coin of the remaining taxpayer.s The EU is obsessed with supposed tax revenues that only a central planner would invent, and at the same time ignores and hinders the enormous possibilities of employment, wealth and productivity improvement that it could attract.

A wrong regulation

The EU subordinates innovation to the bureaucratic whims of officials who insist on keeping things as they were in 1980. The European regulation for technology and innovation is as slow, inefficient and burdensome as it is for the old economy, and it puts obstacles under the excuse of normativism but hides something much worse, the thinly-disguised goal of supporting low productivity sectors by putting barriers to high productivity ones.

When one discusses this problem with regulators, they congratulate themselves because that the approval period of, for example, a Fintech company, is six to nine months. Even worse, anti-business myopia is reflected in a statement from thirty technological entrepreneurs sent to the European Union in which they warn of an “incoherent and punitive” system, “often archaic and highly inefficient” that can cause a “brain drain” of the best and brightest in Europe. ”

There is an obsession of the individual states to shield at any cost the rent-seeking position of their ill-named “national champions”, who have become a kind of disguised Social Securities and are docile companions of political power. The constant subsidization of sectors in the process of obsolescence while penalizing those who could replace and improve the pattern of growth and the business fabric is very evident throughout the EU. By keeping dinosaurs alive, governments prevent the creation of an ecosystem that would make other companies grow, develop and become global leaders. It is not a surprise that, country by country, we see how the European Union that constantly talks about competition is, in reality, trying to put barriers to new leaders so that the rent-seeking sectors keep their privileges of decades ago.

By trying to protect the dinosaurs, the EU countries end up hindering the innovation capacity of their economies and do not allow new giants to thrive.

This is protectionism hidden under the excuse of regulation and taxation, and the worst is that it neither protects national conglomerates, nor encourages them to reinvent themselves, nor does it support the creation of new European leaders.

Of course, there are some positive initiatives, it can not be denied, but the empirical evidence is that those are drowned under a million pages of obsolete European Union rules and taxes that impede it to lead the technological change.

If Europe wants a better future for our children and grandchildren, and our economies to strengthen, it must stop subsidizing what does not work and penalizing what works, stop attacking those who risk and invest in innovation. Because what no European politician is going to achieve is to return to 1980. However, what politicians will achieve is to make Europe the ideal collateral damage of a US-China technological dominance.

ZEW’s economic sentiment gauge for the Eurozone as a whole also edged up to -16.6 – although this failed to provide much uplift for the single currency.

ZEW President Professor Achim Wambach remained pessimistic, saying: “At the moment, we do not expect a rapid recovery of the slowing German economy. The economic situation in Germany has been weak, especially in the manufacturing sector… For the next six months, the financial market experts in our survey do not expect any improvement.”

Meanwhile, Italy’s industrial orders figures for November disappointed, coming in at -1.8 percent on the month rather than 0.5 percent, as expected. Industrial orders were down -5.3 percent on the year.

The pound was also left unmoved against the euro following the publication of the UK average earnings figures.

Wage growth for earnings excluding bonuses came in at 3.4 percent – the fastest growth since 2008.

The UK’s jobs data also showed that the unemployment rate held steady at 4.0 percent.

Meanwhile, Brexit Secretary Stephen Barclay (who was in Brussels yesterday) is due to brief the cabinet on his talks relating to the Northern Irish backstop.

Following his comments that the talks were “productive,” some GBP traders have become optimistic.

However, a DExEU spokesman commented: “We agreed to keep exploring the use of alternative arrangements – especially how they might be developed to ensure the absence of a hard border in Northern Ireland on a permanent footing, avoiding the need for the backstop to ever enter force.”

Meanwhile, Prime Minister Theresa May has come under increasing pressure today after MPs have warned that the threat of a Brexit no-deal is damaging businesses.

Mrs May’s de facto deputy, David Lidington, said: “[A no-deal would cause] serious damage to our economy and, I think, put strain on the union of the United Kingdom.”

Mrs May is also due to head to Brussels this week to meet the President of the European Commission, Jean-Claude Juncker, with Brexit remaining the most likely catalyst for pound movement this week.

A damp squib of a press conference displays a group struggling for charisma, coherence and identity…

As of yesterday morning, seven MPs have officially resigned the whip and quit the Labour Party. They are now “independent”, apparently. Their names, if you don’t know already: Chris Leslie, Chuka Umunna, Luciana Berger, Mike Gapes, Angela Smith…and the other two.

It doesn’t really matter, to quote David Lindsay on Twitter:

People you’ve never heard of leave party they were never really in. #LabourSplit

And so our 7 brave little soldiers head off into the unknown. The Seven Samurai. Ronin, the Japanese might say. Warriors without masters, if you’re in the mood to be flatteringly poetic.

Chickens without heads if you’re being a little more honest.

It’s not gone terribly well so far.

For one thing, the announcement was NOT of the long-awaited [name-to-be-announced] party. There is no party. They have no policies except Brexit is bad and no ideology except Corbyn is worse. There is no leader. No manifesto. No direction.

They are the “independent group”, that is all. A not-at-all catchy name for a sordid collection of also-rans and never-weres. A line up that looks more like a staff photo for a struggling comprehensive than a political party. Or the roster of one of those dodgy personal injury law firms that are always advertising on daytime TV.

(Just imagine Mike Gapes walking at 45 degrees to the camera and asking “Have you or someone you know been injured in an accident at work?”)

They are the smattering of New Labour who don’t realise they got old, and aren’t so much moving away as being left behind. Refusing to flow with the current, and slumping heavily down to the riverbed, to be buried in silt and fossilised.

Who knows, in ten thousand years they might be worth something. Historical curiosities. Archaeologists, yet born, will be poring over old documents and asking “Yes yes…but who IS Chris Leslie…and what did he do?” without realising that everyone was asking that while he was alive too.

The strangest aspect of this is the lack of unity on their part. They are not a party, they are barely a group. They all seem to be leaving for different reasons. Mike Gapes likes war and wants more of it. Chuka wants other people to edit his Wikipedia page for him this time. Luciana Berger wants to do whatever she wants and scream “antisemite!” at anyone who tries to stop her. Angela Smith wants to stop Brexit and run a campaign on the line “Vote for Labour because we won’t win”.

This announcement, of course, has been expected for a while now. The “new centrist party” has been the subject of frenzied negotiation behind the scenes for weeks…now we know they decided on literally nothing and held a press conference anyway.

They aren’t so much a group of comrades storming out as a united front, but rather a bunch of near-strangers who all happen to be leaving the staff Christmas party at the same time and are forced to walk down to the car park together in stony silence.

Less the “Gang of Four”, more “The Seven People Who Sort of Know Each Other Well Enough to Exchange Polite Chat in a Lift But Only for Two or Three Floors and then it Gets Awkward”.

Labour, naturally, have been quick to declare that these MPs should now face by-elections. A gauntlet the seven of them have been startlingly reticent to pick up.

Angela Smith was on the BBC after the press conference, declaring she won’t be running in a by-election because she’d definitely win, before capping it all off with a good old-fashioned piece of British racism.

Angela parted with Labour over “antisemitism” and, as of right now, her new political party has more racism scandals than it has names.

There’s even talk of bringing John Woodcock into the “Independent Group”. A man who was suspended from the party of allegations of sexual misconduct, but then endeavoured to turn it into an epic “you can’t dump me if I dump you first”, and pretend he quit on a point of principle (he didn’t) instead of being fired for being creepy (he was). Since then he has not gone more than three or four consecutive minutes without criticising Jeremy Corbyn. It would probably be annoying if anyone was listening.

One thing we can’t really help them with is a name. They need a new one, and soon. “The Independent Group” is dreadful. Shortening it to “TIG” doesn’t work either, because whatever else they are…they sure ain’t “it”.

Some people have been calling them “the seven dwarves”, a rather unfitting moniker when you think about it. After all, the seven dwarves worked as a team, had discernible personalities and most people know their names.

They are much more the “seven veils”: Disposable, transparent, and they go wherever the wind is blowing.